As a veteran of the videogame business, GameStop knows well the value of extra lives. The company needs to play its remaining few wisely.
The retailer confirmed Tuesday that it is holding “exploratory discussions with third parties” about a potential deal. This followed a report by Reuters that one of those parties was Sycamore Partners, a private-equity firm that specializes in struggling retailers. The news has boosted GameStop’s stock price more than 11% over the last two days, though the shares remain down nearly 14% for...